Full Breakdown
Decline of Alang: The World's Largest Ship-Breaking Yard Faces Crisis
12/16/2025, 12:29:46 AM
Overview of Alang's Ship Recycling Industry
Alang, located in Gujarat, India, is recognized as the world's largest ship-breaking yard, accounting for nearly 98 percent of India's total ship recycling and about one-third of the global volume. Historically, Alang thrived as a hub for dismantling aging vessels, with over 8,600 ships processed since its inception in the 1980s. However, the industry is now facing a significant downturn, with a drastic reduction in the number of ships arriving for recycling.
Factors Contributing to the Decline
The decline in Alang's ship-breaking operations can be attributed to several interrelated factors. Firstly, shipowners are increasingly reluctant to retire older vessels due to post-COVID-19 demand surges that have led to record profits in shipping. As freight rates have soared, owners are opting to extend the operational life of their ships rather than sending them for dismantling. Additionally, geopolitical tensions, such as the Russia-Ukraine war, have driven up marine fuel costs and disrupted global shipping routes, further complicating the situation.
Moreover, compliance with international standards has raised operational costs for Alang's ship-breakers. Following India's accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in 2019, ship-breaking yards were required to invest significantly in infrastructure upgrades and pollution control measures. While these changes have improved safety and compliance, they have also made it difficult for Alang to compete with neighboring countries like Bangladesh and Pakistan, which offer higher prices for ship recycling.
Economic Ripple Effects
The downturn at Alang has had far-reaching consequences for the local economy. Once bustling with activity, the area now sees a significant decline in business for shops selling salvaged ship materials. Local vendors report dwindling sales, and many workers, primarily migrants from poorer Indian states, have left in search of more stable employment. The workforce at Alang has plummeted from over 60,000 at its peak to fewer than 15,000 today.
Supporting industries, such as steel recycling and manufacturing, are also feeling the impact. The reduction in ship arrivals has led to a sharp decline in the supply of scrap steel, disrupting operations at induction furnaces and rerolling mills in the region. As a result, businesses reliant on ship-derived goods are struggling to survive.
Official Statements & Responses
Haresh Parmar, secretary of the Ship Recycling Industries Association (India), noted that the lack of ship decommissioning is a primary issue, stating, “When owners are earning well, they don’t scrap their vessels.” Chintan Kalthia, a yard owner, emphasized the challenges posed by compliance costs, saying, “Compliance makes things safer and brings us up to international standards — it gives us an edge only on paper.”
Verbatim Quotes
- “In the olden days, ships lined up at this yard like buffaloes before a storm,” — Ramakant Singh, Shipbreaker
- “Earlier, there was plenty of work for everyone,” — Chintan Kalthia, Yard Owner
- “Whatever is there on the ship, we own it,” — Haresh Parmar, Secretary of the Ship Recycling Industries Association (India)
Conclusion
The future of Alang's ship-breaking industry remains uncertain as it grapples with declining ship arrivals, increased operational costs, and a shrinking workforce. The local economy, once buoyed by the ship recycling ecosystem, now faces significant challenges as businesses adapt to the new reality.
